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Belarus buy hits Telekom Austria profits

Author: TeleGeography

27/02/2008

According TeleGeography, Telekom Austria Group has reported a 3.3% increase in full-year revenues for 2007, though lower contributions from its domestic operations, higher tax expenses and costs associated with the acquisition of MDC in Belarus have led to a sharp drop in net profits. Revenues rose from EUR4.76 billion in 2006 to EUR4.92 billion last year, with growth in international operations compensating for start-up losses. EBITDA fell from EUR1.91 billion to EUR1.85 billion, while net income dropped 12.3% to EUR492.5 million. Net debt increased by 39.1% to EUR4.41 billion at the end of December 2007, mainly due to the acquisition of MDC. The group had 15.4 million mobile subscribers across its European operations at the end of December, up 50.9% from a year earlier. The domestic fixed line customer base fell from 2.6 million to 2.4 million in 2007, though there was an 8.2% increase in broadband internet connections to 750,700.